American-made car sales shift into high gear
Low gas prices, interest rates fuel demand for pickups and SUVs, driving up profits
The biggest automakers posted mostly improving U.S. vehicle sales in June to cap the best first half in a decade and predicted an even better finish to the year.
Already accelerating sales will find a new gear in the year’s second half, according to several automakers. General Motors Co. has redesigned versions of the Malibu and Camaro coming.
And Ford Motor Co. is finally reaching full production of its aluminumbodied F-150 pickup and is promising a second-half sales surge of the top-selling vehicle in the U.S..
Prices and profits are also rising along with auto sales. Relatively low gasoline prices and interest rates continue to drive up sales of sport utility vehicles and pickups, which favour the Detroit Three automakers that specialize in those big rigs. The average vehicle sold for $33,340 (U.S.) last month, up 2.5 per cent from a year ago, according to prices in the Kelley Blue Book.
“Auto sales continue to push higher and are slated to have one of the strongest years ever,” said Mark Williams, an analyst for Kelley Blue Book. “Demand for SUVs and trucks continues to drive the market, which resulted in several top automakers posting higher sales.”
Industry-wide auto sales rose 3.9 per cent to 1.48 million last month, the biggest June since 2006, according to researcher Autodata Corp., putting the industry on track for its best year in a decade.
Nissan Motor Co. reported June’s biggest gain with a 13-per-cent increase that topped the 12-per-cent average estimate, aided by a 16-percent expansion for its Infiniti premium brand.
Fiat Chrysler said U.S. sales rose 8.2 per cent in June as its Jeep sport utility vehicles and Ram trucks won buyers, maintaining a streak of gains that spans more than five years. .
Honda Motor Co. sales rose 4.2 per cent, compared with estimates for a 7.1-per-cent increase.
Toyota Motor Corp. reported a 4.1-per-cent increase.
The company also sees sales surg- ing in the second half.
Ford missed estimates with a 1.5-per-cent light-vehicle sales gain, compared with projections for a 2.3-per-cent increase
Sales of Ford’s F-Series pickups fell 8.9 per cent as the automaker said it continues to build inventory of the new aluminum-bodied F-150. Sales of Ford’s sport utility vehicles jumped 12 per cent. Ford’s car sales fell 4 per cent, led by a 20-per-cent decline in Taurus deliveries and a 16-per-cent drop in sales of the compact Focus model.
Fiat Chrysler’s U.S.-based unit delivered 185,035 vehicles last month. The group has reported 63 straight monthly increases.
GM sales fell 3 per cent in June, when analysts had anticipated a 3-per-cent increase, as the largest American automaker slashed deliveries to rental-car companies by 45 per cent.